Is Uber Eat(s) Setting Itself Up for Defeat?

18 Nov

Uber has grown rapidly as an alternative to the taxi. Nonetheless, Uber wants to be more than just a passenger app. And one of its more recent pursuits is Uber Eats, a restaurant food delivery service that already operates in 53 cities: “By tapping into the Uber network, you can get anything from our roster of local restaurants, fast. The average order takes 35 minutes from start to finish. When you’re ready to place your order, you’ll see a total that includes the food and delivery price. There’s no need to tip. Pay with your Uber account and track your order on the site as it comes to you.”

There are questions about whether Uber Eats will generate long-term success. There is substantial competition from services such as GrubHub and Seamless. Many local restaurants will deliver in their immediate area. Perhaps most importantly, other services are often free, while Uber Eats charges a delivery fee in some instances.

Take a look at this video clip by industry expert Phil Lempert regarding the prospects for Uber Eats. What do YOU think?


17 Responses to “Is Uber Eat(s) Setting Itself Up for Defeat?”

  1. jenniferohsite November 19, 2016 at 2:34 pm #

    I think that having surge prices will put an end to Uber eats. Although Uber as a car service has been successful, Like stated in your post, Grubhub and Seamless are already highly competitive, and is difficult for Uber eats to compete in this environment with their extra charges placed on customers. Asking customers to pay more during peak times will likely to have those customers order from other services. One of the peak times that I consider valuable is lunch time. Many people in NYC have the same lunch breaks and getting it delivered by Uber eat would result in much surge charge. I do not see it being practical. Car service is one thing, but not for food delivery.

  2. Jingxi Li November 19, 2016 at 7:26 pm #

    Uber Eats is a creative expansive product of Uber Inc. I think it is a good idea because Uber has already had a great number of customers, some of those customers will become the potential customer of Uber Eats directly. If you have a Uber account, you can use Uber Eats in the same account and the same credit card. That is very convenient for the customers. Uber Eats can be used only in some big cities now. Its competitors, like Grubhub, Seamless, and Yelp Eat24 all have much larger coverage areas than it. Hence, Uber Eats should expand its coverage area quickly.

  3. Minghao Frederic Wang November 19, 2016 at 9:57 pm #

    Uber Eats is an independent App but not included in the Uber, which means users need to download it especially. Though it is free on App Store, but it still costs Uber to encourage users to use this App and build the habit. Also, as stated in the post, this service is specifically for innovators due to its service fee which is a high barrier for other types users to try.

  4. Francesca Scotti November 20, 2016 at 11:33 am #

    I think this is a great idea! As the video stated millenniums look for the most convenient way of doing things and Uber Eats certainly takes care of that, especially by being able to pay through your account. Most users of Uber are very loyal so I can’t see there being problem with Uber eats catching on.

  5. wenhuiguo November 20, 2016 at 3:07 pm #

    I do not think Uber Eat is a good idea. Not only because the existing big competitors, GrubHub and Seamless, like you said in your post. But also for the business itself, It should compete to the restaurants since most restaurant offer the delivery service for free. Uber Eat have to convince the customers to accept the service, it would take a lot of time and money.

  6. Jenny November 21, 2016 at 7:12 pm #

    Speaking of the relation between social media and business, China built a tremendous digital world. There are more than 680 million internet users in China and there are highly developed and impeccable mobile applications. There are mainly three mobile applications, which shares majority of its market share. Those are DaZhongDianPing, MeiTuanWaiMai and ELeMa.DaZhongDianPing is started as Yelp and they did service extension. MeiTuanWaiMai and ELeMa is started as a mobile application. MeiTuanWaiMai delivers everything, from food to grocery. EleMa also trying to expend their service. The deliver process is trackable and it ususaly take 10-20 minutes and it always on time. Customers can cancel the order whenever they want.

  7. morourke2 November 23, 2016 at 6:01 pm #

    I believe Uber Eat will not be such a failure as people make it out to be. Uber is a brand name that has marketed themselves very well and for people who do not even use it, they still know what it is. Now that they have expanded their company tapping into another part of the “transportation” market I believe the brand name of Uber will carry the weight of the additional fees that come with it. Personally I have never heard of GrubHub, nor Seamless. I also do not use Uber but I still am aware of what it is. If I were to look into getting food delivered to me I would look to see if Uber does it first simply because I know they offer similar services.

  8. Daniel Frankel November 26, 2016 at 12:22 am #

    Uber Eat is an interesting alternative to Grubhub. The greatness of Uber as it pertains to the taxi industry is that one can expedite a process that may take an hour and with a click of an app can have a car at there door. With food, the idea is used to be able to track the delivery process and make the eating experience and delivery much more sooth. One must respect Uber’s desire to expand into the food industry, as it sees that delivery can be a hassle and seeks to find a quick and easy way to track a delivery. I can see this idea by Uber being very successful, but I feel that they may need to do trial and error with the app to make sure that the food places are on the same page as them and that the time it takes from order to delivery is almost perfectly accurate or Uber Eats will lose steam. As long as the fundamentals behind the idea are sound, this business model and idea by Uber is sure to prosper in a society that adores quick and easy.

  9. brittanyliscoe November 26, 2016 at 1:29 am #

    I think that Uber Eats will probably be met with success simply because it carries the Uber name. I think that if this concept was introduced through a different and new company it probably would not survive due to the popularity of GrubHub and Seamless. However, since it carries the name and reputation of Uber I think people will be more inclined to use it. I know that I personally tend to use as many services from the same company as I can and I think that people will enjoy the convenience of a company they already trust offering a service they are likely to use.

  10. Lucero Sosa November 26, 2016 at 8:04 pm #

    I believe Uber Eats is a very interesting idea. Uber already has many customers so I applaud them for trying to expand their company and seeing where they can get more revenue. However, I feel that it will not be an automatic success just because of the name. Yes, Uber has name recognize and some customers may be brand loyal however many customers will go with the best price. With GrubHub as their competition they have to work to improve their price and establish themselves as a competitor.

  11. Stephanie Giardina November 29, 2016 at 11:32 am #

    I think that while Uber Eats is definitely creative, it kind of falls out of their realm. While they have a very successful and loyal customer base, they would be entering into competition with already established companies. Therefore, while it has the potential to be a success, it also has a risk of being a waste of an investment. Personally, I think they will be more successful in continuing the growth of their brand as it is because it is still young, rather than trying to take this risk.

  12. Palak Patel November 29, 2016 at 5:21 pm #

    I believe that Uber Eats can be something that will work out. The company of Uber is already highly regarded in big cities. People trust Uber and believe that they will always do a good and efficient job. With a new addition to their business, I don’t doubt that they will make it just as good and efficient as their current business. I believe that it will be more difficult to get restaurants to participate with them than anything else. Other than that, I think Uber has made a good enough name for themselves that people will use Uber Eats.

  13. christianr November 29, 2016 at 9:35 pm #

    As an avid user of Uber, surgeprices make me want to cringe. It’s crazy how your fare could be up-charged by $80 dollars just because it’s “a busy time”. I frequently travel so just being able to pull out my phone and request a car and have it be there within a few minutes is incredibly convenient. However, Uber Eats is not something that interests me as I have used Seamless in the past and had no problem with it. Uber would have to do something very different if they want to stick out ahead of the competition.

  14. Muhammad Muzammal December 3, 2016 at 11:21 am #

    Uber Eats faces fierce competition from local delivery companies, but its selling point could be that it’s regular Uber customers 1)trust the company and the brand and 2)are therefore willing to use it. The subcharge attached with Uber Eats will certainly be a downgrade as compared to seamless or Grubhub, but if it is situated in “money” areas such as NYC or San Francisco, I don’t see them struggling in those areas. However, they will face competition with inland, more suburban areas, and services such as “Yelp24,” will give Uber Eats a run of its money. Part of why Uber became successful is because there wasn’t a service as efficient and excellent like Uber in its product category (taxi, transportation). However, with Uber Eats, I see too much competition for them to expand.

  15. Matt Romeo December 8, 2016 at 12:01 pm #

    Sometimes, companies try to do way too much. Uber Eats is not a great idea for a number of reasons. First off, there is a huge amount of competition in the delivery industry alone. Also, just because they are a growing company doesn’t mean everything with work out. I commend them for trying new things, but GrubHub and Seamless are two companies that will continue to stand in their way until they come up with something more unique in the delivery industry.

  16. Mana Tadbiri December 21, 2016 at 12:10 am #

    While I applaud Uber for trying to expand, I’m not sure how receptive people will be to Uber Eats. In theory their idea is brilliant, but in reality it is redundant. Companies such as Seamless and GrubHub have been in the game for a longer period of time and have already built up a customer base, leaving Uber Eats to be the unpopular new kid. The only thing I believe Uber Eats will have going for it is the 35 minutes or less rule, but realistically with New York City traffic, it will probably take longer.


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